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Evangelical Homes of Michigan Case Study

Evangelical Homes of Michigan's life care services at home and digital technology platform allows provider to break through and provide wellness solutions beyond bricks-and-mortar. This is the second in a series of case studies from the Preparing for the Future Report.

The Organization: Evangelical Homes of Michigan (EHM) offers an array of products and services for older adults in Southeast Michigan, including independent housing and housing with services, skilled nursing and short-term rehabilitation, hospice care, memory support services, adult day programming, respite care, home-delivered meals, home care and geriatric care management.

The Approach: EHM has gone through significant changes in the past five years after making a number of strategic decisions based on extensive research about its current customer and the customer of the future. These decisions resulted in the launch of an organization-wide health and wellness initiative and the purchase of two home care agencies. In addition, EHM launched two subsidiaries:

LifeChoices™, a continuing care at home program, provides members who pay a one-time fee and a monthly service fee with an inclusive package of services and supports designed to keep them independent and cared for over a lifetime, all in the comfort of their own home.

LifeChoice Solutions™ provides an a la carte menu of support products that promote wellness, safety and independence through the use of the latest technologies and lifestyle coaches.

Technology: Lifestyle coaches in the LifeChoice programs get to know their customer well and follow the consumer’s lead in deploying whatever solutions will help that consumer remain healthy, enriched and independent. This may involve:

Managing a home modification like a bathroom renovation.

Hiring a handyman to take care of burdensome maintenance chores.

Delivering daily meals or catering dinner parties.

Introducing a variety of technology solutions that can keep track of vital signs, send an alert to caregivers when a problem arises, or allow a person with a hearing impairment to know when visitors arrive.

Currently EHM utilizes over 20 technology solutions tested through a road-mapping process.

Business Case: As of Oct. 2011, an executive director and a team of lifestyle coaches served 140 customers in the LifeChoices™ and LifeChoice Solutions™ subsidiaries. The LifeChoices™ one-time membership fee is based on the customer’s age and ranges from $35,000 to $50,000. Monthly fees average $400. According to the LifeChoices™ model, the program will break even if it can count 25 customers among its members.

EHM projects that the typical LifeChoices™ member will participate in the program about nine years before requiring ongoing health care and 12 years before they require skilled nursing care. EHM is at risk for the payment of that care in this model. Currently, the sales cycle for LifeChoices™ is about 6 to 8 months.